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Key Terms Instructions: Please define the following key terms. Show Who? What? Where? When? Why Important?
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Net Income
Net income is the total profit of a company after all expenses, including taxes and costs, have been subtracted from revenues.
Indirect Method
The indirect method is a way of calculating cash flows from operating activities for the cash flow statement by starting with net income and adjusting for changes in balance sheet accounts.
Liquidity
The simplicity of turning an asset into cash without impacting its market value.
Cash Flows From Operations
The net amount of cash generated or used by a company in its operational activities during a specific period.
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